• Revenue: DKK5.7 billion for 2024.
• EBITDA Margin: 28%, equating to DKK1.6 billion.
• Travel Health Vaccine Growth: 22% increase compared to the previous year.
• Public Preparedness Revenue: DKK3.2 billion, driven by mpox outbreak and US JYNNEOS launch.
• Rabies Vaccine Growth: 16% increase.
• TBE Vaccine Growth: 19% increase.
• Gross Margin: 49%, impacted by manufacturing activities and write-downs.
• R&D Expenses: DKK863 million, including DKK70 million from San Diego site closure.
• Cash Flow from Operating Activities: Close to DKK2 billion.
• Cash and Cash Equivalents: Nearly DKK2.2 billion.
• Guidance for 2025 Revenue: DKK5.7 billion to DKK6.7 billion.
• Guidance for 2025 EBITDA Margin: 26% to 30%.
• Public Preparedness Guidance for 2025: DKK3 billion to DKK4 billion, with DKK2.5 billion secured by contracts.
• Travel Health Guidance for 2025: Approximately DKK2.5 billion.
• Chikungunya Vaccine Revenue Expectation for 2025: DKK50 million to DKK100 million.

• Warning! GuruFocus has detected 4 Warning Signs with BVNKF.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bavarian Nordic AS (BVNKF) reported strong financial performance for 2024 with revenue of DKK5.7 billion and an EBITDA margin of 28%.
• The travel health vaccine franchise grew by 22%, driven by strong sales of rabies and TBE vaccines.
• The company secured contracts for more than DKK3 million doses of mpox vaccine, contributing to strong growth in public preparedness.
• Successful tech transfer for rabies and TBE vaccines is on track, setting industry standards for timelines.
• Bavarian Nordic AS (BVNKF) launched JYNNEOS in the US private market, generating DKK178 million in revenue in its first year.

Negative Points

• The gross margin of 49% fell below target due to write-downs on MVA batches and a water damage incident at the manufacturing site.
• Vaxchora experienced negative revenue in Q4 due to product returns, highlighting challenges in the relaunch phase.
• The company faces uncertainties regarding US manufacturing requirements and potential tariffs, which could impact operations.
• There is a need to increase awareness of Chikungunya among healthcare professionals and the public, which could affect vaccine uptake.
• The first quarter of 2025 is expected to be light in terms of revenue and EBITDA, due to seasonality and timing of revenue recognition.

Q & A Highlights

Q: Can you provide an update on the rescheduling of the ACIP meeting and its impact on sales projections for 2025? A: The ACIP meeting scheduled for February was postponed and then canceled, and we haven't received any updates on when it will be rescheduled. Despite this, we plan to launch as scheduled, focusing on disease awareness among healthcare professionals. We have received significant interest in Europe, particularly in Germany, which should help us meet our sales projections of DKK50 million to DKK100 million for 2025. Paul Chaplin, CEO

Q: What are you hearing from the US government regarding commitments to biodefense and manufacturing in the US? A: There are many rumors, but concrete discussions are rare. Previously, the US government indicated that some manufacturing elements should be in the US, but specialty products like ours might get waivers. We have some manufacturing set up in the US, which might mitigate potential impacts from new regulations. Paul Chaplin, CEO

Q: How would potential tariffs affect your contracts with the US government? A: We have Grand River in the US for fill-finish operations, which might reduce sensitivity to tariffs. If tariffs are imposed, we would pass through any additional costs to the government. Paul Chaplin, CEO

Q: Are you considering supplying vaccines for the Chikungunya outbreak in La Reunion Island? A: Yes, we are in discussions with various entities about the availability of our vaccine and how quickly we can supply it. Providing access to those in need is a high priority for us. Paul Chaplin, CEO

Q: How do you plan to increase awareness of Chikungunya, and could a major outbreak help in this regard? A: We are focusing on raising awareness among the public and healthcare professionals about the severity of Chikungunya. While an outbreak could increase awareness, we are actively working on educational initiatives to inform people about the disease and its risks. Paul Chaplin, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.